One of the most oldest and popular types of health insurance in the United States in the HMO or health maintenance organization, mainly because HMO premiums are often significantly lower then any other type of plan. Here’s why.
HMOs were developed as far back as 1910 for a specific group of people (workers) to better afford health care. The very fist HMO in the United States was developed for lumberjacks and other specific work groups. At the time HMO premiums were right around 50 cents per month per member.
Fun Fact: Did you know that Blue Cross Blue Shield originated as an HMO for teachers?
The way that an HMO works and the whole reason why it is less expensive then the others is the way it is set up. The first HMOs contracted with particular hospitals or an area physician to take care of all of its members for a particular cost. That is more or less the way it works today.
An HMO carrier contracts with a number of doctors and health care facilities to care for their members at a set fee for each service or a set amount per member per month. The doctors and health care facilities are guaranteed a certain number of clients every month while the HMO gets a huge break on the normal cost of medical services.
Fun Fact: HMOs focus on prevention, rather then repair.
For patients, an HMO can be a little restrictive. You will need to choose a primary care doctor from within the plans network and get referrals for any care you need that your primary doctor can not handle, like specialty care.
At InsureSaver Insurance Agency we know how difficult it can be to find the right policy for your needs and budget. Let our agents’ help you with HMO premiums from top rated carriers like Aetna, Coventry, Humana One, Anthem Blue Cross Blue Shield and more. Simply click the link for our fast free quote engine or give us a call toll free at (800) 366-2751.
